Record Labels That Disrupted Norms Then Went Bankrupt

Co-founded in a NYU dorm room by Rick Rubin and Russell Simmons, Def Jam revolutionized music culture by bringing hip-hop icons like LL Cool J, Beastie Boys, and Public Enemy to the masses. During its early independent phase, the label faced near-fatal financial paralysis when its original distribution arrangement through CBS Records briefly stalled, forcing a complete corporate restructuring.